Well that’s an interesting predicament to have. Before answering your question a brief background on both

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured’s demise.

Annuity
In short, it is a contract between an investor and an insurance company. The investor buys an annuity against a considerable amount of money and, in return, the insurance company promises to pay back the value of the annuity, in future, in several installments or a lump sum payment. The annuitant can even contract to receive a steady income till death. Therefore, annuities offer a secured and stable source of investment turned into income.

Now annuities supports your future income requirements whereas life insurance meets beneficiaries needs

Also annuity pays the value of investments + gains whereas life insurance gives you the amount which generally is multiple times the premium paid.
So essentially both concepts tailor to different needs m so you will have to take an objective look at your requirements and then decide. There are many options for life insurance and annuities in Chicago. The point to remember is to take your time deciding and always ask yourself if you investment meets your goals or not.

If you are new to investing, then I am assuming you are a young man.  Because annuities offer tax deferred growth, you can be subject to the 10% penalty tax if you withdraw gains before age 59 1/2.  I wouldn't recommend an annuity to someone younger than 45 - unless they are ok being locked out of that money for a while.

Life insurance obviously carries a death benefit, but cash value life insurance provides for potentially (and I stress "potentially") tax free growth of principal - like a Roth IRA with higher fees and a death benefit.  Most younger folks opt for the cheapest form of life insurance: Term life.  If you go that route, make sure that your Term policy is "convertible" to a permanent policy should something change in your health during the term.  If you have more investable assets, and anticipate being in a higher tax bracket in the future, permanent life insurance might be worth a look.

For me I will go with annuity. They are better in offering more useful information which is an advantage of it. They are more popular not only because of the financial insurance they offer but because of the increase rate they contribute to the investor’s savings and investment, with their features. And other thing, while the annuity pays back the total value of the investment made plus the gains earned on it, the life insurance investment returns an amount that may be multiple times larger than the premiums paid. [url=http://www.pensionfinder.org.uk/]Pensions [/url]

Start working with a CFP. Google FPA. DIY works best for sleep.

These forums are for licensed professionals only - NOT for the general public.

Please contact a banker/advisor/agent in your state for advice for your specific circumstances.

[quote=sable]Well that’s an interesting predicament to have. Before answering your question a brief background on both

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured’s demise.

Annuity
In short, it is a contract between an investor and an insurance company. The investor buys an annuity against a considerable amount of money and, in return, the insurance company promises to pay back the value of the annuity, in future, in several installments or a lump sum payment. The annuitant can even contract to receive a steady income till death. Therefore, annuities offer a secured and stable source of investment turned into income.

Now annuities supports your future income requirements whereas life insurance meets beneficiaries needs

Also annuity pays the value of investments + gains whereas life insurance gives you the amount which generally is multiple times the premium paid.
So essentially both concepts tailor to different needs m so you will have to take an objective look at your requirements and then decide. There are many options for life insurance and annuities in Chicago. The point to remember is to take your time deciding and always ask yourself if you investment meets your goals or not.[/quote]

Hey I have also read one of the post regarding the varibale annuities, but with your reply, I am confused that opting for an annuity could be a good credit option. Orcould you suggest me to go with the life assurance.